ANNUAL REPORT 2018 | 2019 Years Of Keeping You Safe In The Sky 1998 – 2018 ANNUALREPORT 2018 2019 PART A General Information 1 General Information 1 2 List of Abbreviations and Acronyms 2 3 List of Diagrams, Figures, Graphs and Tables 3 4 Foreword by the Chairperson of the Board 4 5 Overview by the Director of Civil Aviation 6 6 Statement of Responsibility and Confirmation of Accuracy of the Annual Report 10 7 Strategic Overview 11 8 Legislative and other Mandates 12 9 High-Level Organisational Structure 13 10 Board Composition 14 11 Executive Management Committee 15 PART B Performance Information 1 Statement of Responsibility for Performance Information for the Year Ended 31 March 2019 17 2 Auditor’s Report: Predetermined Objectives 18 3 Situational and Performance Analysis 19 4 Strategic Outcome-Oriented Goals 25 5 Performance Information 26 6 Review of SACAA Programmes and Activities 38 7 Strategy to Overcome Areas of Underperformance 40 8 SACAA Revenue Collection 50 PART C Governance 1 Introduction 52 2 Accounting Authority 57 3 Audit and Risk Committtee 67 4 Risk Management 70 CONTENTS 5 Internal Control Unit 72 6 Internal Audit 72 7 Combined Assurance Model 73 8 Fraud and Corruption 75 9 Minimising Conflict of Interest 75 10 Code of Conduct 76 11 Health, Safety and Environmental Matters 76 12 Company Secretary 77 13 Corporate Social Responsibility 77 PART D Human Resources 1 Overview of Human Resources Matters 85 2 Human Resource Oversight Statistics 87 PART E Annual Financial Statements 1 Report of the Auditor-General to Parliament on the South African Civil Aviation Authority 98 2 Accounting Authority’s Responsibilities and Approval 102 3 Audit and Risk Committee Report 104 4 Accounting Authority’s Report 108 5 Company Secretary’s Certification 112 6 Statement of Financial Position 113 7 Statement of Financial Performance 114 8 Statement of Changes in Net Assets 115 9 Cash Flow Statement 116 10 Statement of Comparison of Budget and Actual Amounts 117 11 Notes to the Consolidated Annual Financial Statements 119 31 August 2019 Mr Fikile April Mbalula, MP Minister of Transport Private Bag X193 PRETORIA 0001 Honourable Minister Mbalula, It is a privilege and honour to hereby submit the 2018/2019 Annual Report of the South African Civil Aviation Authority (SACAA). This report gives a comprehensive account of the SACAA’s performance and efforts to fulfil its mandate for the period 01 April 2018 to 31 March 2019. Yours sincerely, _________________ Mr Ernest Khosa Chairperson: SACAA Board Annual Report 2018 | 2019 v PART General Information PART A - General Information PART A General Information General Information REGISTERED NAME: South African Civil Aviation Authority PHYSICAL ADDRESS: Ikhaya Lokundiza 1 16 Treur Close Waterfall Park Bekker Street Midrand, Johannesburg POSTAL ADDRESS: Private Bag X73 Halfway House 1685 TELEPHONE NUMBER: +27 11 545 1000 FAX NUMBER: +27 11 545 1455 EMAIL ADDRESS: [email protected] WEBSITE ADDRESS: www.caa.co.za EXTERNAL AUDITORS: Auditor-General of South Africa BANKERS: Standard Bank of South Africa COMPANY SECRETARY: Ms Nivashnee Naraindath (BA, LLB, LLM, Admitted Attorney) ISBN NUMBER: 978-0-621-47376-6 Annual Report 2018 | 2019 1 PART A PART PART A - General Information General Information General Abbreviations and acronyms ACSA Airports Company South Africa GA General Aviation ADO Approved Design Organisation HR Human Resources AEP Aviation Environmental Protection HRC Human Resources Committee AFCAC African Civil Aviation Commission IATA International Air Transport Association AGM Annual General Meeting ICAD International Civil Aviation Day AGSA Auditor-General of South Africa ICT Information and Communication AIID Accident and Incident Investigations Technology Division ISO International Standard Organisation AIP Aeronautical Information Publication IT Information Technology AMO Aircraft Maintenance Organisation MOSP Master Oversight and Surveillance Plan AMORG Approved Manufacturing Organisation NATS National Aviation Transformation Strategy AOC Air Operator Certificate NDP National Development Plan ARC Audit and Risk Committee NTCA Non-Type-Certified Aircraft ASC Aviation Security Committee NUMSA National Union of Metal Workers of ASEC Aviation Safety and Environment South Africa Committee OHS Occupational Health and Safety ASO Aviation Safety Operations PANS-OPS Procedure for Air Navigation Services - ATNS Air Traffic and Navigation Services Aircraft Operations ATO Aviation Training Organisation PESTLE Political, Economic, Social, Technological, AvMed Aviation Medicine Legal, and Environmental AvSec Aviation Security PFMA Public Finance Management Act, 1999 B-BBEE Broad-Based Black Economic (Act No. 1 of 1999) Empowerment PMS Performance Management System CAE Chief Audit Executive POC Procurement Oversight Committee CAP Corrective Action Plan PPL Private Pilot’s Licence CAPSCA Collaborative Arrangement for the PSC Passenger Safety Charge Prevention and Management of RAASA Recreational Aviation Administration Public Health Events in Civil Aviation of South Africa CAR Civil Aviation Regulation ROC RPAS Operator’s Certificate CARCom Civil Aviation Regulations Committee RPAS Remotely Piloted Aircraft Systems CASSOA Civil Aviation Safety and Security SAA South African Airways Oversight Agency SACAA South African Civil Aviation Authority CATS Civil Aviation Technical Standards SADC Southern African Development Community C-FARP Cross-Functional Accident Reduction Plan SARPs Standards and Recommended Practices CORSIA Carbon Offsetting and Reduction Scheme SASO SADC Aviation Safety Organisation for International Aviation SCM Supply Chain Management DCA Director of Civil Aviation SMS Safety Management System DoA Delegation of Authority STE Short-Term Expert DoT Department of Transport SWOT Strengths, Weaknesses, Opportunities, EBS Enterprise Business System and Threats EI Effective Implementation TCA Type Certified Aircraft ESAF Eastern and Southern Africa ToR Terms of Reference ESWACAA Eswatini Civil Aviation Authority TR Treasury Regulations ExCo Executive Management Committee USOAP Universal Safety Oversight Audit FAA Federal Aviation Administration Programme FIU Flight Inspection Unit USAP Universal Security Audit Programme FSTD Flight Simulation Training Devices 2 Annual Report 2018 | 2019 PART A - General Information PART A General Information List of Diagrams, Graphs, Figures and Tables Diagrams/Figures/Graphs Diagram 01: ICAO Safety and Security Critical Elements page 12 Graph 01: Passenger Safety Charge figures between 2014/2015 – 2018/2019 page 20 Figure 01: The number of South African female pilots with an ATPL for fixed-wing aeroplane page 21 Figure 02: The number of South African male pilots with an ATPL for fixed-wing aeroplane page 21 Graph 02: Organisational performance comparison over a seven-year period page 36 Graph 03: Number of aircraft accidents: a three-year comparison page 39 Graph 04: Number of fatal aircraft accidents: a three-year comparison page 39 Graph 05: A three-year comparison of fatalities page 40 Graph 06: A three-year comparison of serious incidents page 40 Diagram 02: Schools awareness programme page 81-83 Figure 03: Skills development cost page 89 Diagram 03: Reasons for staff exits page 92 Figure 04: Misconduct and disciplinary action page 92 Tables Table 01: Summary of aircraft accidents per aircraft category page 07 Table 02: Demographics of licensed aviation personnel by trade page 22 Table 03: Aircraft type: three-year comparison page 23 Table 04: Type certified versus non-type certified aircraft: seven-year comparison page 24 Table 05: Punitive measures against non-compliance page 25 Table 06: Performance information for the period of 01 April 2018 - 31 March 2019 page 26-35 Table 07: Organisational highlights page 37 Table 08: Aircraft accidents per aircraft category page 38 Table 09: Aviation Safety Operations MOSP 2018/2019 page 41 Table 10: Aviation Safety Operations MOSP 2018/2019 – deviation explanation page 42 Table 11: Aviation Security MOSP 2018/2019 page 43 Table 12: Aviation Security MOSP 2018/2019 – deviation explanation page 43 Table 13: Aviation Infrastructure MOSP 2018/2019 page 44 Table 14: Aviation Infrastructure MOSP 2018/2019 – deviation explanation page 44 Table 15: Stakeholder engagement activities page 48 Table 16: Regional technical assistance and cooperation missions page 49 Table 17: SACAA revenue collection page 50 Table 18: A snapshot of the SACAA’s application of The King IV™ Principle page 53-55 Table 19: Board Composition page 66 Table 20: Board and Board Committee meetings page 68-69 Table 21: Board remuneration page 70 Table 22: Risk register page 71 Table 23: Combined Assurance Implementation page 74 Table 24: Two-year comparison of reported injuries on duty page 77 Table 25: Personnel cost by Division page 88 Table 26: Personnel cost by salary band/level page 88 Table 27: Performance rewards by salary band/level page 89 Table 28: Training costs per Division page 90 Table 29: Employment and vacancies per Division page 91 Table 30: Employment changes per salary band/level page 91 Table 31: Employment equity status - male page 93 Table 32: Employment equity status - female page 94 Table 33: Employment equity status - disabled staff page 95 Annual Report 2018 | 2019 3 PART A PART PART A - General Information General Information General The SACAA reviews its organisational performance quarterly Foreword by the against its Strategic Plan, from which the APP is developed. The APP is signed annually, with our Executive